ANNUALREPORT 2013
83
Notes to theFinancial Statements
(Cont’d)
4) SIGNIFICANTACCOUNTINGPOLICIES
(Cont’d)
j)
Financial Instruments
i)
Initial recognition andmeasurement
Financial instruments are recognised in the financial statements when, and only
when, theGroup and the Company become a party to the contractual provisions of
the instruments.
Financial assetsandfinancial liabilitiesare initiallymeasuredat fairvalue.Transaction
costs that are directly attributable to the acquisition or issue of the financial assets
and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial recognition. Transaction costs
that aredirectly attributable to theacquisitionof financial assets or financial liabilities
at fair value through profit or loss are recognised immediately in profit or loss.
ii) Financial instrument categoriesand subsequentmeasurement
TheGroup categories financial instruments as follows:
Financial assets
The Group classifies its financial assets in the following categories: at fair value
through profit or loss, held-to-maturity, loans and receivables and available-for-sale.
Theclassificationdependson thepurpose forwhich thefinancialassetswereacquired.
Management determines the classification at initial recognition.
a) Financial assets at fair value throughprofit or loss
Financial assets are classified as financial assets at fair value through profit or
loss if theyareheld for tradingoraredesignatedassuchupon initial recognition.
Financial assetsheld for tradingarederivatives (includingseparatedembedded
derivatives) or financial assets acquired principally for the purpose of selling in
the near term.
Subsequent to initial recognition, financial assets at fair value through profit or
lossaremeasuredat fair value.Anygainsor lossesarising fromchanges in fair
valueare recognised inprofit or loss.Net gainsor net lossesonfinancial assets
at fair value through profit or loss do not include exchange differences, interest
and dividend income. Exchange differences, interest and dividend income on
financial assets at fair value through profit or loss are recognised separately in
profit or loss as part of other losses or other income.
Financial assetsat fair value throughprofit or losscouldbepresentedascurrent
or non-current. Financial assets that areheldprimarily for tradingpurposes are
presented as current whereas financial assets that are not held primarily for
tradingpurposesarepresentedascurrentornon-currentbasedon thesettlement
date.
Investment inquotedsecuritiesaredesignatedas fairvalue throughprofitor loss
on initial recognition.
